The author reviews some recent theories, experiments, and observations in psychology and psycholinguistics which challenge the basic assumptions of the audio-lingual method of foreign language teaching: Language learning is habit formation, requiring analogy rather than analysis; meaning can be learned only in the matrix of allusions to the culture in which the language is used; language should be heard and spoken before being read and written. The "errorless habit formation" of the audio-lingual approach is being replaced with the new theory of hypotheses construction. The importance of analysis is being realized, as is the necessity of personal and situational meaning in language materials. Every language has its set of sociolinguistic as well as linguistic rules, which are, by themselves, a distinct means of communication. The study of bilingualism aids the analysis of the systematic nature of the functioning of sociolinguistic rules (which include alternation, sequencing, and co-occurrence rules). Teachers must instruct students in bilingual behavior and must establish a set of priorities and instruct according to these values. Sample intonation and word drills and grammar hypotheses, based on the vocabulary and structure in Lesson I of M.E. Gowland's "Espanol Primer Curso," are appended. (AMM)